Related Events

U.S. stocks climbed Monday, pushing the benchmark Standard & Poor's 500 Index to an all-time high, extending a rally from Friday when a better-than-forecast jobs report brightened the economic outlook without fueling expectations that the Federal Reserve will raise interest rates sooner.

The S&P 500 added 0.3 percent, to 2,137.16, surpassing the prior intraday record set in May 2015. The Dow Jones Industrial Average rose 80 points, or 0.4 percent, to 18,226.8, less than a half-percent away from the all-time high it set last year.

The June payrolls data calmed concern brought about by the previous month’s report that showed hiring had slowed to the weakest pace since 2010. The latest figures may convince investors that the economy will continue to expand in the face of weaker profits and Britain’s vote to leave the European Union. Further reassuring investors, the Bank of England and the European Central Bank have said they’ll act to arrest any fallout of Brexit, and a victory for the ruling party in Japan cleared the way for stimulus.

“Momentum is in play here, so as we look to break above new highs, that’ll get people to jump on the bandwagon,” said Matt Maley, an equity strategist in New York at Miller Tabak & Co LLC. “Investors are thinking they have to jump on board before the train leaves the station. The huge amount of uncertainty brought by the Brexit vote will keep the Fed from acting this year, which is helping stocks avoid some selling.”

The S&P 500 advanced 1.5 percent on Friday, rising more than 1 percent for the fourth time in two weeks. The gains restored $1.4 trillion of market value that was erased after the U.K. voted to leave the EU on June 23. Before the payrolls figures, a report Wednesday showed service providers expanded in June at the fastest pace in seven months and Fed minutes indicated less urgency in the need to raise interest rates.

Traders price in little chance of an increase in borrowing costs this month and see less than even odds of a hike until at least the end of 2017. Probabilities for a move were as much as 55 percent at the beginning of June.

Even as the latest bout of global anxiety eased, the CBOE Volatility Index edged higher by 2.8 percent, to 13.57. The measure of market turbulence known as the VIX sank 11 percent on Friday, capping the first back-to-back weekly declines since April.

Investors will also turn their attention to earnings with Alcoa Inc.’s report after the markets close on Monday. Analysts predict profit for S&P 500 companies will drop 5.7 percent, which would make it the fifth straight quarterly decline, the longest streak since 2009.

The rally in 2016 has been led by industries often considered “defensive.” Utility and phone companies are up the most this year, posting advances of at least 20 percent, with utilities reaching a record last week. Trading on Monday didn’t fit that trend, as seven of the S&P 500’s 10 main industries rose with cyclical groups like technology, financial and industrial companies leading gains.

Technology shares rose for a fourth day to the highest in a month. The group was boosted by semiconductor companies, including Qorvo Inc. and Skyworks Solutions Inc., which added more than 2.7 percent.

Meanwhile, Twitter Inc. slipped 2 percent after its rating was lowered to neutral from buy at SunTrust Robinson Humphrey. The firm said Twitter is “highly unlikely” to be bought this year.

Multimedia

Videos

Nominations

Events

CTO of the Year Awards You've taken the time to nominate your top technology leaders, now it's time to find out who came out on top! Tickets are on sale now for IBJ & TechPoint's CTO of the Year August 23rd! Get your tickets today!.

Commercial Real Estate Power Breakfast Get the scoop on Indy’s commercial real estate scene at our Commercial Real Estate & Construction Power Breakfast on September 12th. Get your tickets today!.

Close

IBJ and our partners use technology such as cookies on our site to personalize content, provide social media features, and analyze our traffic. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Use.